Startups in the UK have raised around £663 million in funding since the country entered a state of lockdown to deal with the coronavirus pandemic, the local media reported.
Plexal, the innovation centre and workspace owned by clients of Delancey, and Beauhurst, the UK’s leading database for fast-growth companies, have analysed UK investment activity from Monday 23 March 2020 until Monday 27 April and have found that funding in UK-based startups have increased by 34 percent during the period when compared to the same period last year.
The surge in funding in UK startups is mostly driven by the technology sector, as digitalisation has received a significant push due to the coronavirus pandemic.
A total of 114 deals were signed during the period, which is however a 39 percent decrease, when compared to the same period in 2019.
Andrew Roughan, Managing Director of Plexal told the media, “While the Future Fund is an excellent first start, it’s clear that more is required to protect the businesses that have driven job creation and economic growth in the UK for the last 10 years. “This research is designed to cut through the doom and gloom and speculation to see which parts of the startup ecosystem are thriving, and which need urgent support. If we don’t act now to stimulate the market and ensure funding is distributed widely and quickly, we risk a lost generation of startups and entrepreneurs.”
Earlier this month, UK-based fintech startup Previse raised $11 million in a fresh funding round which was led by Temasek and Kuehne + Nagel-founded investment firm Reefknot, alongside Mastercard.